* New crude processing agreement for 12 months starting Jan
* Tender to be awarded "soon" - Pertamina official
By Mark Tay
SINGAPORE, Nov 30 Indonesia's Pertamina
is seeking a new crude processing agreement for its
2017 Iraqi crude allocations as the firm's current processing
agreement with Shell expires in December.
The state-controlled oil firm issued a tender for the new
processing deal earlier this month and has since closed it. It
is expected to announce the results "soon", a Pertamina official
said, without disclosing the exact timeline.
Refiners and selected traders were invited to submit
proposals for a processing agreement that will see Pertamina
supply 1 to 2 million barrels of Iraqi crude per month in
exchange for similar volumes of oil products, trading sources
with knowledge of the tender said.
The processing agreement will last for 12 months starting
January 2017, and both Iraqi Basra Light and Heavy crude grades
could be supplied by the Indonesian oil firm.
Shell is one of the participants in the tender, said a
second Pertamina official, speaking on condition of anonymity
because the official was not authorised to speak to the media.
Shell didn't immediately respond to a request for comment.
In June, Pertamina selected Shell to process 1 million
barrels per month of Iraqi crude at a Singapore refinery from
July to December this year.
Pertamina's monthly Iraqi oil shipments to the Singapore
refinery are likely to consist of 290,000 barrels from a stake
in the West Qurna block and a further 700,000 barrels from other
The firm has resorted to crude processing agreements with
third parties as its domestic refining capacity of around 1
million barrels per day only meets about two-thirds of
Indonesia's daily oil consumption.
Indonesian refineries are also geared to refine low sulphur
crude grades from West Africa and the Asia-Pacific and less
suited to process high sulphur crude from the Middle East like
Iraqi Basra Light and Heavy.
(Reporting by Mark Tay; Additional reporting by Wilda Asmarini
in JAKARTA and Jessica Jaganathan in SINGAPORE; Editing by